Business Yacht Ownership
Learn how it is possible to offset a substantial portion of new yacht costs with business income, special financing options, and potential tax advantages.
Owning a new yacht is a great experience and the fun of owning it shouldn’t be diminished by the difficulty of paying for it. For years savvy yacht buyers have recognized that there is a completely legitimate way to significantly reduce the cost of owning a yacht by structuring ownership in a manner that allows you to write-off the purchase price of your yacht and deduct most ownership expenses (insurance, slip fee, maintenance) against your employment income. This can be done by placing the yacht in charter either a local charter company right here in California in a marina convenient for you, or at one of our yacht charter bases in the world’s best sailing destinations. We work with Seaforth Yacht Charters in San Diego and with Waypoints® for worldwide locations. Waypoints® offers charter experiences in the world’s best cruising destinations.
Your Boat As A Business
First, let’s discuss the tax benefits of placing a yacht in charter and then we’ll discuss whether this will work for you. The key to understanding why yachts placed in charter can generate significant tax benefits is that these are the same tax benefits available to businesses for the purchase of business equipment. By placing your new yacht in a charter management program you are converting it from a personal asset to a business asset, essentially an equipment rental business. The relationship between you and the charter management company is structured so that you own the yacht and they assist you in managing your yacht rental business. Placing your yacht in charter also is an excellent way to ensure that it will receive professional maintenance, service and care.
If you have any questions or would like further information on purchasing and placing a new yacht in charter in California or Worldwide, contact us.